Egypt is showing clear signs that it’s at the beginning of a real estate cycle that will see significant price increases according to experts. Research conducted by Business Monitor International found that property prices and rents are rising at a considerable pace provoked by strong international demand, a rapidly expanding tourism industry and the country’s ‘dynamic conditions’ which have allowed commercial property and businesses to flourish.
In response to the previous underdevelopment in the country, investors have been offered a great opportunity to build their portfolios and take advantage of the upward trend. Construction of commercial property is beginning to increase due to the high levels of demand which are currently out-stripping supply. This demand is said to be driven by large Western and Middle Eastern multinationals moving into Egypt to set up operations there.
Business Monitor International’s report stated:
“The result is that conditions are dynamic. Vacancy rates vary, but are generally low or falling. Looking ahead, we expect that the optimism of protagonists in the office and retail sub-sectors will be justified. There should be a double-digit increase in rentals in these sub-sectors in 2011; further – if smaller – rises are likely in the following years,”